Starbucks

In addition to the trade-offs Howard Schultz and Starbucks made. Another consists of the company’s management deciding to invest a significant amount of capital to provide the highest quality coffee products for their customers. Providing quality coffee requires extreme dedication and

These products, as well as the company’s Ready-to-Drink product line (bottled coffee and tea available in sizes and locations similar to what one would find Gatorade or Naked Juice), has allowed it to move beyond the simplistic produce-and-sell business model found at its stores and into the retail market. Having focused on the retail market for the better part of the last decade while still maintaining its store operations (now with more than 20,000 stores worldwide), Starbucks has seen its market share increase exponentially while its competitors, such as Dunkin Donuts, have seen far less success. (As an example, Starbucks has a market cap of $84 billion while Dunkin Donuts has a market cap of less than $5

Starbucks’s has been able to surpass its rivals and continue being one of the premier roaster and retailers of specialty coffee in the world since its inception in 1985. Such an accomplishment has been sustainable due to a concrete company strategy. When Starbucks’s first debuted back in 1985 it was the first coffee shop to bring specialty coffees to the mass market in the United States. Along with only purchasing and roasting top quality coffee beans they designed their strategy in a way which gave the customer the ability to customize their drinks to meet each person’s individual preference. They also included free Wi-Fi in all of their stores, which in turn increased an already competitive advantage even more by not only offering customers

A challenge that Starbucks faces is the competitive market in the industry that shares the similar interest of coffee. With many competitors that serve coffee, Starbucks standouts than your typical fast food world of coffee. With a higher end that delivers a café atmosphere, Starbucks offers their customers more than you average cup of Joe. Staying competitive is imperative to organizations that share the same industry. With relatively higher cost, customers want to spend less and still have the quality of the coffee. Coffee lovers want the lower cost, quality product and the ease of getting their product without too much hassle. “The chains have been playing up their un-Starbucks features — like fast service, easy-to-pronounce sizes and, that all-American mainstay, the drive-through. Then there is the price: an average 12-ounce cup of McDonald 's Premium Roast coffee is 99 cents, well under Starbucks 's standard price for drip coffee and a far cry from some of its drinks that can cost upward of $4” (Bossman, 2006).

*(I recently went to the Starbuck’s on Spring Garden and noticed how it has changed, the cleanliness, the wooden chairs and tables. I do remember when Starbucks was a warm inviting environment and I can really appreciate the vision Schultz had to begin

Starbucks lose its uniqueness when baristas used to grind beans throughout the day whenever a new pot of coffee had to be brewed which was at least every eight minutes. Many baristas began to grind all of the day’s coffee beans in the morning and store the rest of the day. Baristas now use push-button machines to make espresso drinks. That stores no longer smell like coffee and that every store looks cookie-cutter.

The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.

Starbucks strategies have successfully made them one of the biggest names in the coffee market globally. Starbucks has been able to survive the high competitive market and to differentiate themselves from other coffee shops by producing high quality coffee. Also, Starbucks successfully create a huge numbers of loyal customers worldwide by providing great services and high quality products. Starbucks was able to survive 2008 financial crisis successfully. In 2008, Starbucks net income was -53% that means Starbucks was losing so much many yet, 2009 Starbucks was able to not only stop their losses but also to gain a profit of 24%. However, Starbucks should be worry from the possibility of another financial

When Howard Schultz first experienced Starbucks Coffee, Tea and Spice he was immediately smitten by the operations and business culture, and actively pursued a job with them. At that time, Starbucks Coffee, Tea and Spice was an 11 year old coffee shop with six stores in Seattle specializing in high-quality coffee beans. Starbucks Coffee, Tea and Spice desired to bring fine coffee to their customers, so to that end, they imported quality coffee beans, roasted them to their own exacting specifications and sold the beans and high-end coffeemakers to their customers, so customers could make superb coffee at home. The only coffee brewed onsite was the sampling of a roast, in order for a customer to determine if they wanted to buy that

Under graph is from the executive summary section of Starbucks.com, the Document of Webcast and Presentation report. It shows that Starbucks own 32.6% share in coffee and Snack Shops in US 2011.   The 32.6% market share of Starbucks in snack and coffee industry is couple the market share of its competitor – Dunkin Corp.. Moreover, I believe its market share still has room to grow in the future to reach 40 percent of market share in the world, as –worldwide coffee empire –Starbucks.

When Howard Schultz began to notice a decline in the Starbucks brand he built from a single coffee house into a multinational chain of over 15,000 locations employing over 172,000 people, he decided to begin 2008 with new direction. He reassumed the role as CEO and proposed a set of new initiatives to reenergize the company as a whole. These initiatives started at the front lines of Starbucks by changing some of the current machinery used to create espresso and coffee. Next he launched new roasted coffee blends that were set to revolutionize overall taste and perception of coffee. Additionally, due to perceived loss of customers, he introduced a revamped rewards program as well as an online forum to allow anyone from

Also Starbucks currently has Number 1 share in coffeehouse market, where their brand valuing them at $4 billion. This tells that Starbucks has a strong brand reputation which is associated with quality of coffee they provide and excellent customer service. Its brand is the most valuable strength they have over the other competitors in market. Their financial status is also a strength they possess. Starbucks profitability has consistently been on the rise for the past 4 years and is now 14%. The company also outmatches its nearest competitors such as Peet’s Coffee and Tea, with 24.5% ROI. Starbucks also possess largest coffeehouse chain internationally. Starbucks manages around 20,000 coffeehouses in over 60 countries, making it the largest coffeehouse chain in the world. Starbucks employee benefits and care are one of the best in the world. The company offers its employees wide range of benefits regardless of their status, and has higher wage than most of its competitors.

For more than three decades since Starbucks started its operations, the company was considered as a leading coffee chain operator. However, in 2008, the company faced a significant financial downturn that almost cost it its position in the marketplace. Through strategic planning and adopting a differentiation strategy, Starbucks, under the CEO Howard Shultz, recovered from the financial decline to regain a competitive advantage over other big companies like McDonald's and Panera Bread. This paper will discuss the business strategy and management for Starbucks Company and emphasize the importance of business strategy. It will cover the strategic basics of Starbucks, its financial downfall, an analysis of its profitability and a comparison with its key competitors as well as its technological threats and opportunities.

Starbucks was initially not very famous choice but with a little change in strategy it entered into small and large enterprises and hit the market saturation. Today Starbucks is the total coffee supplier and retail market in United State. The company is popular because of being user friendly as it organizes the music and book events and with Wi-Fi connection, which is available at all the outlets just like a home or office. Originally Starbucks target market was white collared, sophisticated people. But with the passage of time new strategies evolved and low budget and class friendly outlets were established, while maintain its initial strategy in its real form, which is to inculcate the desire of having the Starbucks experience in its customers with its affordable luxury, which on the other hand allowed premium for Starbucks products. The company revenue is generated by the sale of whole bean coffees, which are 76%, and secondarily through equipment by

Nevertheless, Starbucks’ stock price has had its downfalls in the past five years. Around July 29th, 2012, the company’s stock had a significant dip. According to CNN Money, although the company did significantly well in the months prior, it failed to match its predictions due to global economic conditions, more specifically, its increasing efforts to expand in Europe. Therefore, many investors began to mistrust the company due to the small margin of error in its prediction. Furthermore, in 2007, Starbucks Corp. made yet another mistake. After a rapid expansion and significant growth during the previous year, the company’s stock fell by 42% that year. The underlying reason being that in opening new stores, Starbucks lost its identity. It became more of a standard grab-and-go coffee shop than a unique coffee experience. Therefore, many customers felt unsatisfied and the company ultimately had a decrease in sales. However, it is important to note that the dip in stock price was generated by more than just the